Can algorithms fix Airbnb horror stories?

By Tim Boreham

Horror stories of Airbnb “party houses” have spurred the growth of short-stay booking intermediaries that apply algorithmic-based tests and more stringent booking conditions to weed out likely troublemaking guests.

Red flags include applicants who live in the same city, have no recommendations from other hosts or who book for a wedding for multiple people at short notice.

Not surprisingly the 18 to 22 year old age bracket – the peak partying demographic – can expect more scrutiny.

Hawthorn East home that was trashed by Airbnb users. Credit:Scott McNaughton

According to global booking platform Airsorted, about one in ten Airbnb applications handled by the firm are rejected for various reasons.

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“Towards New Year’s Eve the rejection rate will increase exponentially and we would rather be selective,” said Airsorted local director Malvina Russo.

Launched three years ago in London, Airsorted launched in Sydney in July 2017 and then in Melbourne, Brisbane and Auckland in January this year.

For a 15 per cent cut on top of Airbnb’s standard 3 per cent listing fee Airsorted handles all aspects of the rental including the Airbnb listing, cleaning and key exchanges.

But Russo says guest vetting is a key attraction of the service for landlords.

“Our priority is definitely ensuring a better experience for hosts and to protect their property and the neighbours as well,” she said. “We are not afraid to reject guests that present red flags.”

Airsorted currently manages 350 properties listed on Airbnb, a mix of casual and permanent landlords.

“We are seeing exponential growth of 25-30 per cent month on month. We would also like to be in Adelaide, Perth and Hobart in the next six to 12 months.”

Meanwhile, local start-up MadeComfy manages 4000 guests a month across 600 properties listed on Airbnb as well as Stayz and Bookings.com.

Hometime, another local intermediary, was founded in 2016 and this year entered a formal alliance with Airbnb. The company operates in Sydney, Melbourne and the Gold Coast and claims to be able to lift average letting rates by 30-50 per cent while “carefully vetting all requests.”

MadeComfy Melbourne general manager David Powell said the platform screened both guests and hosts by checking guest reviews, demanding photo ID and scrutinising the composition of the booking party.

“There are a few commonsense things you can do to stop parties but often they’re things that (owners) let slip.

“It could be as simple as allowing a one-night booking or not getting the proper security deposit.

“We also like to check in 90 to 95 per cent of our guests face to face for security matching,” he said.

The growth of booking intermediaries comes as the NSW Government prepares legislation to crack down on the shared accommodation sector.

Proposed measures include a 180 day a year limit on rentals and the right of strata title owners to ban short-stay rentals.

Under a two-strike policy, hosts or guests who commit two serious breaches will be placed on an exclusion register for five years.

Victoria has lagged on a legislative response to the problems, but Premier Daniel Andrews said the government was open to reforms following the death of 19 year old Laa Chol in a CBD apartment rented out via Airbnb. A 17 year old man has been charged with murder.